base currency
Definition
The first currency in a currency pair. In a currency exchange, the exchange rate is quoted as the units of one currency in terms of a single unit of a base currency. For example, in a currency exchange of U.S. dollars for Japanese Yen, the base currency is the U.S. dollar.
Cite this definition
Related Terms
counter currency
Related Research Articles from the InvestorGuide.com University
Introduction to the Economy Learn how the economy can be influenced by the US government through fiscal and monetary policy. Understand the importance of a global economy and why individuals should make a portion of their investments overseas.

Introduction to Other Investments Stocks, bonds and mutual funds are the most popular asset classes and therefore get most of the market's attention, but there are other important investment opportunities every investor should know about as well, including options, futures, and currency. Although these investments are complex and usually intended for sophisticated investors, it's worth understanding what they are and how they operate in order to decide if they should play any role in your overall investment strategy.

Currency and Precious Metals Provides insight into the currency and precious metals market. Provides a description of these markets and reasons why (or why not) to pursue these types of investments.

Featured Sponsor
|
|
|